THE PR COMMISSIONER OF INCOME TAX CIT (A) vs. M/S BRIGADE ENTERPRISES LTD

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ITA/20/2016HC KarnatakaKAHC01017754201622 October 2020Bench: ALOK ARADHE,H.T. NARENDRA PRASAD4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, referencing a related judgment, found the substantial questions of law to be in favor of the assessee. Consequently, the appeal filed by the revenue was dismissed.

What were the facts?

The Revenue appealed against an ITAT order concerning Assessment Year 2010-11. The appeal raised questions regarding disallowance under Section 14A, disallowance of interest under Section 36(1)(iii), and restriction of deduction under Section 80IB(10).

What were the issues?

The key issues involved the correctness of the ITAT's decision on disallowances related to expenditure not directly related to income, interest paid, and eligibility for deduction under Section 80IB(10).

Which sections of the Income-tax Act were involved?

Section 14A,Section 36(1)(iii),Section 80IB(10),Section 260A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF OCTOBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.20 OF 2016 BETWEEN: 1. THE PR.COMMISSIONER OF INCOME TAX CIT(A)

5TH FLOOR BMTC BUILDING

80 FEET ROAD, KORAMANGALA

BANGALORE - 560 095 2. THE ADDL. COMMISSIONER OF INCOME-TAX

RANGE - 11

2ND FLOOR, BMTC BUILDING

80 FEET ROAD, KORAMANGALA

BANGALORE -560 095. ... APPELLANTS (BY Mr.K.V.ARAVIND, ADV.,) AND: M/S BRIGADE ENTERPRIES LTD. 29 & 30TH FLOOR, WORLD TRADE CENTRE BRIGADE GATEWAY CAMPUS 26/1, DR.RAJKUMAR ROAD RAJAJINAGAR BANGALORE - 560 055. ... RESPONDENT (BY Mr.CHYTHANYA K.K., ADV.) THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 08.07.2015 PASSED IN ITA

2 NO.1275/BANG/2014 FOR THE ASSESSMENT YEAR 2010-2011, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO: (I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. (II) ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSSED BY THE ITAT, BANGALORE IN ITA NO.1275/BANG/2014 DATED 08.07.2015 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ADDL. COMMISSIONER OF INCOME TAX RANGE - 11, BANGALORE. THIS ITA COMING ON FOR FINAL HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment year 2010-11. The appeal was admitted by a bench of this Court vide order dated 15.02.2016 on the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case, the tribunal was justified in disallowing in respect of disallowance under Section 14A read with Rule 8D(2)(ii) when same was in accordance with parameters of said section?

3 (ii) Whether on the facts and in the circumstances of the case, the tribunal was justifiecd in dismissing the appeal towards disallowance of interest paid under Section 36(1)(iii) of the Act when same was rightly disallowed by assessing authority as the assessee had filed to establish the claim under said provision? (iii) Whether on the facts and in the circumstsances of the case, the tribunal was justified setting aside Assessing Officer's action in restricting the claim of d.. under Section 80IB(10) to the extent of Rs.8,88,13,831/- as against Rs.39,04,37,646/- claimed by the assessee when the assessing authority has rightly disallowed the claim as per parameters said section? 2. For the reasons assigned by us in the judgment passed today in I.T.A.NO.373/2014, the substantial questions of law framed by this court are answered in favour of the assessee and against the revenue. In the result, we do not find any merit in this

4 appeal, the same fails and is hereby dismissed. Sd/- JUDGE Sd/- JUDGE ss

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